Environmental and Resource Economics

, Volume 64, Issue 3, pp 373–399 | Cite as

Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment

  • Yasuhiro NakamotoEmail author
  • Koichi Futagami


We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, we show how the environmental policies affect the natural resource and the domestic economy.


Renewable resources The effects of environmental policies Small open economy 

JEL Classification

F41 H21 Q28 



We are grateful to the co-editor Daniel Rondeau and two anonymous referees for their comments that are extremely useful in revising the manuscript. We also thank Jun-ichi Itaya, Noritaka Kudoh, Kazuo Mino, Yasuhiro Takarada, Syunsuke Managi, and seminar participants at The Research Institute of Economy, Trade, and Industry (RIETI) and the Otaru University of Commerce. Yasuhiro Nakamoto acknowledges Grand-in-Aid for Scientific Research Project (A) (No. 23241019) from the Ministry of Education, Culture, Sports and Technology.


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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Faculty of EconomicsKyushu Sangyo UniversityHigashi-kuJapan
  2. 2.Graduate School of EconomicsOsaka UniversityToyonakaJapan

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